Question : 21. Pacific Corporation Inventory $380,000 Accounts receivable : 1224856

 

 

21. Pacific Corporation 

Inventory

$380,000

Accounts receivable

$190,000

Land

290,000

Accounts payable

180,000

Cash

129,000

Unearned revenue

110,000

Prepaid rent

33,000

Common stock

312,000

Retained earnings

220,000

Long-term notes payable

200,000

 

 

 

 

Calculate the total amount of current assets for Pacific Corporation. A. $   842,000B. $1,022,000C. $   732,000D. $   842,000

 

22. Which of the following would appear on an income statement? A. Unearned revenueB. Cost of salesC. Retained earningsD. Dividends

 

23. Gain and losses are reported on the multi-step income statement under which of the following classifications? A. Cost of salesB. Other revenues and expensesC. Operating revenues and expensesD. Gross margin

 

24. A question asked by stockholders is, “How much gross profit did the company make?” What financial statement would have the “gross profit” indicated as a separate line item? A. The balance sheet because retained earnings represents gross profitsB. The statement of cash flows as cash inflows and outflows represents gross profitsC. The multi-step income statementD. The single-step income statement

 

25. On a multi-step income statement, subtracting total operating expenses from gross profit will equal: A. gross margin.B. operating income.C. income before taxes.D. net income.

 

26. The list below contains several items that appear on a multi-step income statement. 

1.

Other incomes and expenses

2.

Income before income taxes

3.

Net income

4.

Operating expenses

5.

Gross margin

6.

Net sales

7.

Income from operations

 

 

Select the choice that lists the items in the order they would appear on a multi-step income statement. A. 6, 5, 4, 7, 1, 2, 3B. 7, 6, 1, 4, 2, 3, 5C. 6, 5, 4, 1, 7, 2, 3D. 6, 7, 4, 1, 2, 3, 5

 

27. Trump Company 

Other revenues

$110,000

General and administrative

 

 

 

expenses

$250,000

Dividends

$120,000

Gross profit

$750,000

Selling expenses

$220,000

Income tax expense

$117,000

 

 

 

 

Refer to the information provided for Trump Company. What is Trump Company’s income from operations? A. $160,000B. $280,000C. $220,000D. $120,000

 

28. Trump Company 

Other revenues

$110,000

General and administrative

 

 

 

expenses

$250,000

Dividends

$120,000

Gross profit

$750,000

Selling expenses

$220,000

Income tax expense

$117,000

 

 

 

 

Refer to the information provided for Trump Company. What is Trump Company’s net income? A. $390,000B. $200,000C. $273,000D. $280,000

 

29. Trump Company 

Other revenues

$110,000

General and administrative

 

 

 

expenses

$250,000

Dividends

$120,000

Gross profit

$750,000

Selling expenses

$220,000

Income tax expense

$117,000

 

 

 

 

Refer to the information provided for Trump Company. By what amount will net income on a single-step income statement differ from net income on a multi-step income statement if Trump Company prepares both formats? A. $12,000B. $8,000C. $0D. $6,000

 

30. As used in accounting, the “Notes to the Financial Statements” should be: A. shown at the bottom of the income statement.B. shown in the notes section of the balance sheet.C. included as an integral part of the financial statements.D. considered an optional part of the financial statements.

 

 

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